MP Materials Shares Surge 9% Friday as Rare Earth Stocks Rally Broadly

MP Materials Corp. shares rose more than 9% on Friday as rare earth stocks rebounded broadly, with the materials sector leading the broader market. The Nasdaq rose 0.31%, while the S&P 500 gained 0.42%. The U.S. Department of Energy recently selected seven projects aimed at expanding rare mineral processing, battery manufacturing, and recycling capacity, after which rare earth stocks moved higher.

The latest funding rounds align with President Trump's "Unleashing American Energy" executive order.

The materials sector was the strongest performer on Friday, rising 2.09%. MP Materials significantly outperformed its sector peers.

The move comes as Washington seeks to strengthen domestic rare mineral supply chains.

MP Materials produces rare earth materials and operates the Mountain Pass facility, the only significant-scale rare earth mining and processing site in North America.

Technical Analysis

MP shares broke above their 100-day and 200-day simple moving averages. The stock also sits well above its 20-day and 50-day averages.

Momentum indicators have improved. The MACD is above its signal line, with the histogram holding positive. This suggests buying pressure is strengthening.

However, the long-term trend is still in recovery. The stock formed a "death cross" in July, when the 50-day moving average crossed below the 200-day average.

MP has also rebounded from its July low. Its 52-week range is $37.81 to $100.25.

Resistance sits near $61, with support around $53.50. Holding above the long-term moving averages could be important for sustaining the breakout.

Analyst Views

The stock carries a consensus Buy rating, with an average price target of $71.79.

JPMorgan maintained an Overweight rating on July 29, cutting its price target to $60. Needham maintained a Buy rating on July 22, lowering its target to $73. Barclays maintained an Overweight rating on July 16, reducing its target to $65.

Edge Ranking

The Edge scorecard gives the stock a momentum score of 11.62, reflecting weak relative performance versus the broader market.

Despite Friday's rebound, the score indicates the stock's long-term momentum remains in recovery mode. Investors may watch whether the stock can hold its recent breakout and continue higher.

Key ETF Exposure

MP Materials is held across multiple exchange-traded funds, including the VanEck Rare Earth and Strategic Metals ETF at a 6.27% weight and the Sprott Critical Materials ETF at a 3.19% weight.

ETF inflows and outflows can create additional buying or selling pressure on heavily weighted holdings.

MP Materials Stock Movement

MP stock: MP Materials shares were up 9.3% at $60.16 at the time of Friday's publication.